A short squeeze is one of Wall Street’s most painful traps. It happens when investors pile in, betting a stock will fall, only to watch it move sharply in the opposite direction. As losses mount, short sellers are often forced to buy back shares to close their positions. That buying can push the stock even higher, creating a powerful cycle that fuels even bigger gains.
That setup may now be taking shape in Cracker Barrel Old Country Store (CBRL). The restaurant and retail chain has suddenly found itself back in investors’ good graces after delivering a better-than-expected fiscal third-quarter report. The earnings surprise sparked a rally in CRBL stock, but the story did not end there.
